In an open letter, Federation Chief Executive Phil Pluck urged the government to recognise the cold chain’s £14 billion annual contribution to UK GDP and its role in supporting more than 184,000 jobs across food and pharmaceutical supply chains.
Pluck wrote: “This government states that it wishes to support the most vulnerable populations, the most vulnerable workers, and the most vulnerable communities. Recent government decisions have seen exactly the opposite. The upcoming budget must recognise this and see that industry support is now needed, not more industry taxation.”
The letter highlights the impact of recent increases in National Insurance, the National Living Wage, and new regulatory measures, which Pluck says are adding hundreds of millions of pounds to operating costs in a high-volume, low-margin industry. He warns that these pressures, combined with the withdrawal of some renewable energy support schemes, are slowing investment and leading to job losses across the supply chain, including amongst food retailers.
Pluck added: “We are a sector that wishes to adopt renewable alternatives in terms of energy investment and wishes to support our communities… in terms of employment and employment opportunity. This Budget must be one that supports us, not adds further cost to an industry that has already seen the negative effects of recent cost increases.”
The Federation is calling on the Chancellor to:
- Take a cautious approach to any increase in the National Living Wage in 2026, echoing recommendations from the Resolution Foundation
- Freeze further employment cost rises for cold chain employers
- Recognise the sector’s critical role in national supply chains and collaborate on accelerating renewable energy adoption
- Review proposed employment regulations and mitigate their cost impact.
The Federation also welcomed the Government’s new Modern Industrial Strategy and expressed its commitment to working with ministers to ensure it delivers for the cold chain and the wider economy.